# Kabu Methodology

Last updated: 2026-06-13

Kabu turns Japanese filings into source-cited research with rules set before testing, source citations, and clear thesis breakpoints. Kabu is a financial publisher, not an investment adviser.

## Core Principle

Rules before results. Cohorts, benchmarks, and pass/fail tests are fixed before results are reviewed so the process cannot move the goalposts after seeing an outcome.

## Research Process

1. Cohort construction
   - Kabu starts with a deep-value cohort below a 0.63x price-to-book threshold, using published research rather than tuned thresholds.

2. Validation
   - The system must clear tests for signal strength, stability, drawdown, and risk-adjusted return.

3. Independent checks
   - Separate reviews challenge thesis risk, fair value, and pre-publication claims. Disagreements stay in the record.

4. Earnings power
   - Reported profit is bridged toward normalized EPS. Unsourced adjustments do not ship.

5. Source trail
   - Every claim ties to a document, date, excerpt, and source record.

6. Thesis breakpoints
   - Positions carry observable facts that would change or end the thesis.

## Public Sources

Kabu uses public sources including:

- EDINET and Yuho annual securities reports
- TDnet exchange disclosures
- J-Quants market data
- Company-published materials
- Kabu analysis

## Limitations

Kabu publishes general research and analytics. It does not provide individualized advice. It does not know or consider any subscriber's holdings, tax position, account size, risk tolerance, or suitability.

## Full Page

Read the human-facing methodology page: https://getkabu.com/methodology/